The numbers
February foreclosure filings of 308,524 reflect a decrease of 2 percent from January. However, this is still a 6 percent year-over-year increase.
“The 6 percent year-over-year increase we saw in February was the smallest annual increase we’ve seen since January 2006, when we began calculating year-over-year increases, but it still marked the 50th consecutive month of year-over-year increases in foreclosure activity,” said James J. Saccacio, CEO of RealtyTrac.
Some fear the recent decrease in foreclosures is a false-positive. With the Treasury’s HAMP coming under fire for its low success rate in modifying mortgages for at-risk homeowners, many fear foreclosures will eventually find their second wind.
DHW asks: Do you think foreclosures will continue to decline?
]]>DHW asks: Do you think the housing market will see a double dip?
]]>Animosity between real estate agents and appraisers is nothing new. However, in recent months appraisers have been undercutting sales prices with increased regularity. Much of the conflict has to do with the rising number of foreclosures selling at discount prices. Approximately 40 percent of the homes to sell last year were either foreclosures or short sales. Adding to the drama, buyers are placing a 30% premium on non-foreclosed homes, according to zillow.com.
Appraisers admit that it is getting tougher to determine a home’s worth in today’s market. Some real estate agents, however, blame the appraisal cuts on cost cutting measures taken by lenders. Oftentimes, lenders will use an in-house appraiser or outsource to an out-of-area, low-cost appraiser. Either way, these appraisers may not be familiar with the markets they are hired to gauge.
The silver lining
With appraisal cuts on the rise, this may be a sign that some markets are beginning to stabilize. In a declining market, it becomes easier to find comparable sales for an appraisal. As prices rise, appraisers have a tougher time finding sales that support the higher prices. It’s just one of the growing pains that come with a recovering market.
DHW asks: Are you seeing a rise in appraisal cuts in your market?
]]>Elizabeth Warren, who chairs the panel responsible for overseeing the $700 billion financial bailout program, remains unconvinced. “We’re concerned that not enough foreclosures will be prevented,” Warren said.
USAToday reported the panel’s three major concerns with the government’s loan modification program.
If you have questions about a loan modification under HAMP, visit the official website.
DHW asks: Do you think loan modifications will continue to outpace foreclosures?
]]>Lockhart predicts foreclosures will “spike” unless the the Obama administration gets more aggressive with loan modifications. The former director of the FHFA feels greater principal reductions are in order to keep families in their homes.
For more information on loan modifications, visit the Government’s official website.
DHW asks: Do you agree with Mr. Lockhart?
]]>States leading in foreclosure:
DHW asks: Are foreclosures down in your area?
]]>Opponents of the housing tax credit feared an inflationary reaction in home prices. Although housing inventories are down, existing units still outweigh the demand.
NAR chief economist, Lawrence Yun, predicts home prices will stabalize next spring. His prediction may be overly optimistic. Foreclosures and short sales made up 30% of thrid quarter sales. There is no real evidence to suggest foreclosures will take a breather in 2010.
DHW asks: Do you see a bottom to the housing market?
]]>DHW asks: Have you or anyone you know used the FHA 203k rehab loan? How was the experience?
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